Businessman Kevin O’Leary told CNN host Laura Coates on Thursday that “every” real estate developer is guilty of the alleged real-estate fraud that Donald Trump is found to have committed.
New York Attorney General Letitia James (D) is suing Trump, alleging the Trump Organization repeatedly overvalued its properties to lenders while reporting different property values to tax officials. A judge has already ruled that Trump committed fraud. The questions that remain in the case are how much the Trump Organization will be fined and what it means for future business.
Many people believe James pursued the case with political motives, an assessment O’Leary appears to agree with. In fact, he told Coates that every real estate developer everywhere is guilty of what Trump did.
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O’Leary explained:
So, if you’re a developer and you’ve got a building on a block anywhere in America and it’s worth, let’s say, $500 million and you want to build a building right beside it, you go to the bank and say, “This building is worth $500 million. I’d like to borrow a construction finance loan against this asset, and I want you to tell me it’s worth 500 million, too.” The bank negotiates with you and says, “Well, no, we think it’s worth $400 million,” and you fight it out.
You’re always trying to show your assets in the brightest light with the sunshine you can possibly determine for them. You want them to be worth the very most because you’re only going to get a 40% or 50% loan-to-value, as it’s called. Then you borrow that money. In the case of a $500 million asset, maybe you get $250 million, and you build a new building with a construction finance loan.
“Forget about Trump: Every single real estate developer everywhere on Earth does this,” O’Leary said.
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The concern, then, should be who lost money? “Nobody,” according to O’Leary, because the Trump Organization paid its bank loans. Thus, if James were to be consistent, she would sue “every real estate developer” in her jurisdiction, he said.
“If you’re a real estate developer, you’re watching this, you’re saying, ‘What is this? This is ridiculous!'” he said. “This is, for real estate developers, this is a joke.”
The explanation, disarming the substance of James’ case against Trump, left Coates shocked.
“It’s fascinating to me to hear this perspective because you don’t often hear it from that particular angle,” she said.
“The first question, is everybody doing it in real estate? Yes, everybody is doing it, not only domestically, all around the world. This is how it works,” O’Leary responded.
For his part, O’Leary told Coates he believes the case will not survive an appeal.
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With the #Election only months away isn't it time to pause the litigation, #indictments and attempts to #impeach either candidate so that we can hear more policy positions on #BorderSecurity #EnergyIndependence #ForeignPolicy and #Taxes so voters can make an informed decision?! pic.twitter.com/V6DUeyMNtc
— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) January 12, 2024
Eric Thompson